Benchmarks rose in trading on Friday, with the Nifty50 facing trading pressure as it neared the 18,000 mark.
The Nifty50 ended its longest winning streak in two years when the 50 Pack Index hit a low of 17,800 and broke the BSE Barometer Sensex 652 to end the session at 59646.15. All indices are down more than 1% since the last close.
IndusInd Bank NSE -0.99%, up 4%, Bajaj Twins, Tata Steel, SBI NSE -1.71%, Maruti, ICICI Bank NSE -1.72%, Reliance 27 shares in 30 packs, down 2 %, more than -3% each. Additionally falling were NTPC, M&M, HUL, Kotak Mahindra Bank, Titan, and Sun Pharma.
RIL trades at NSE -0.78%, BFSI
We saw selling in the names of banks like Reliance Industries NSE -0.78%, ICICI Bank, HDFC Bank NSE -1.75%, and SBI. Reliance Industries is trading 1.35% lower at 2,624.60. On Thursday, the government raised the excise duty on exported diesel to Rs 7 per liter and brought back the excise duty on jet fuel but reduced the excise duty on crude oil.
In banking, IndusInd fell 3.5%. 2.4 percent was lost by SBI, ICICI Bank, and HDFC Bank. Among them, Bajaj Finance NSA -1.23% and Bajaj Finance NSA -1.38% declined more than 2% each.
Dollar rally
On Friday, the dollar hit its monthly high in the basket. The dollar index rose 0.121% to 107.620, its highest level since July 18, after hitting 107.68, Reuters reported.
The gauge is on track to rise 1.89% this week after St. Louis Fed President Louis James Bullard said he would target a third consecutive 75 basis point rate hike next June. 12 Be careful. »
The dollar index has a different relationship to stocks.
technical weakness
The bulls looked tired as the Nifty50 posted its eighth straight rally on Thursday. The smoothed RSI oscillator contrasted negatively with the timeframe below the buy zone. According to experts, this is the first warning sign.
The last two parts of next month are also “reasonable.”
The dollar index has a different relationship to stocks.
The bulls looked tired as the Nifty50 posted its eighth straight rally on Thursday. The smoothed RSI oscillator contrasted negatively with the timeframe below the buy zone. According to experts, this is the first warning sign.
Also, the last two sections showed the appearance of small uncertain candlesticks. Friday’s sell-off was seen as the Nifty50 hit 18,000, indicating that traders were nervous around the key indicator.
Financial market analysis
The market has recovered nicely over the last month and a half, making up for all the losses since the beginning of the year. According to Motilal Oswal, Nifty50 is currently trading at 21 times earnings per share from FY23, well above its long-term average.
“High prices prevent market expansion… Earning some profit and putting money into bonuses can be seen as a short-term plan. The main players can be called financial services,” said V.K. Vijayakumar, Investment Director. Strategist, Geojit Financial Services.
Motilal Oswal said there is speculation that future growth will be driven by continued domestic and international macroeconomic performance and disappointing earnings.
FPI Outflows
Some fear that a sharp rise in the dollar will lead to risky trading in emerging markets. On Thursday, REIT was a net seller of home appliances for Rs 1,706 crore.
Vijayakumar said a sharp rise in the dollar index would hit capital inflows to emerging markets like India”Active REIT buying may fall in August, which would affect sentiment.
